The clock is now ticking for businesses to ensure they and their brands are compliant when it comes to making green claims, with the powerful Digital Markets, Competition and Consumers (DMCC) Act coming into effect this year.
This game-changing piece of legislation sends a clear message that non-compliance will not be tolerated, and arms the UK’s Competition and Markets Authority (CMA) with even broader powers to regulate and impose significant fines for violations.
With wide-reaching implications, this Act spans all CMA regulations, including the Green Claims Code. This follows the CMA recently enforcing landmark changes to ASOS, BooHoo, and Asda’s green claims.
As the digital landscape continues to evolve, businesses must adapt quickly or also risk facing serious financial or reputational consequences.
The DMCC Act stands apart from the Green Claims Code, but it gives the CMA the teeth to take more robust enforcement actions against companies found to not be compliant.
While not explicitly mentioning "greenwashing," the Act targets businesses that engage in practices likely to mislead consumers into making transactions they wouldn't otherwise make. The key point here is that unsubstantiated or misleading environmental claims may attract closer scrutiny moving forward.
Of most relevance to online supermarkets and retailers is Part 3 of the act, which gives the CMA new powers to enforce consumer law directly as well as via the courts, including the ability to impose fines for companies found in breach.
The CMA is also highly incentivised to do so, with the last government specifically directing the CMA to protect consumers from misleading environmental claims in its Draft Strategic Steer which informs how the CMA sets its priorities for the coming years.
The CMA’s level of interest in this area has been evidenced recently by its investigation into Unilever’s green claims.
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Once Part 3 of the Act is implemented, the CMA will have no difficulty bringing enforcement actions (and potentially fines) against:
It’s important for retailers to revisit the CMA’s Green Claims Code and ensure they are compliant.
Green claims (sometimes called ‘environmental claims’) are claims that show how a product, service, brand or business provides a benefit or is less harmful to the environment.
Many businesses use green claims to help market their products or services. They do this through a range of methods such as: statements, symbols, emblems, logos, graphics, colours and product brand names.
The Green Claims Code can also apply to claims that suggest a business is run in accordance with principles of sustainability, sustainable consumption, or sustainable development such as claims around worker’s welfare and corporate social responsibility.
The CMA’s Green Claims Code sets out 6 core principles that must be met for your environmental claims to be accurate, impactful and compliant. All green claims must:
Monitoring potentially risky claims across thousands of product categories and validating them effectively at scale is a complex undertaking. A major hurdle is the difficulty in aligning differing regulatory frameworks and determining which to prioritise.
With Provenance, the world’s leading retailers can streamline green claims compliance through automation. Click here to discover more.
The bill, which became law last April is split into 5 parts. They began to implement these parts on January 1st 2025, and they will continue to do so through to 2026.
The CMA’s new powers to enforce and fine for noncompliance are set to commence from April 2025.
With product launch cycles being protracted affairs, initiating compliance measures promptly is imperative.
1. Review your current green claims
Start by taking a close look at all of your existing environmental claims, whether they relate to your brand, or individual products. For multi-brand retailers, you will need to also make sure all of your third-party brand's claims are compliant.
2. Develop a clear process for verifying claims
Create a reliable system to back up your sustainability claims, ensuring they are supported by accurate data and third-party verification whenever possible. This may involve working with recognised certification bodies that can independently verify the accuracy of your claims and ensure compliance.
3. Prioritise investment in sustainable practices
For many businesses, the above steps may reveal some hard truths about where you are on your sustainability journey. If so, that’s OK – but it’s likely time to dedicate more resources towards enhancing your sustainable practices to meet the CMA’s Green Claims Code standards in time.
As the CMA’s new regulatory powers come into play, businesses need to see these changes as an opportunity, not just a compliance challenge.
For retailers that stay ahead of the curve, this legislation offers the chance to bolster consumer trust, put real weight behind their sustainability messaging, and avoid costly fines.
As market dynamics evolve, those who understand and adapt to these new regulations will position themselves not only to comply but to thrive in an increasingly transparent and competitive market.
Provenance is already helping brands and retailers deliver against the CMA’s requirements by providing an easy automated solution to detecting risk and validating sustainability claims at scale. To learn more, click here.
Oliver Farmiloe is the Growth Marketing Manager at Provenance. He works closely with our Impact team to create impactful, data-driven campaigns that help us achieve our mission of empowering consumers to make conscious, sustainable decisions online.
Provenance powers sustainability claims you can trust. The global leader in sustainability marketing technology, Provenance helps brands and retailers share credible, compelling and fact-checked social and environmental impact information at the point of sale. Provenance’s technology is already increasing conversion rates, brand value and market share for customers including Cult Beauty, Douglas, GANNI, Napolina, Arla and Unilever
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